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Why do credit scores matter?

  • Updated

Your credit score is extremely important because it is a measure of trust for lenders compared to other consumers. The higher your score, the more trust you will have from lenders and institutions to pay the money back. A well looked-after credit score can improve financial well-being and can make getting a mortgage, car loan, or starting a business much easier!


Once a credit score is damaged, it can take years to recover. 


The table below shows some of the potential benefits of high vs. low credit scores. 


Higher Score 

Lower Score

Higher credit limit

Lower credit limit

Higher chance of approval

Lower chance of approval

Lower interest rates

Higher interest rates

More borrowing room

Less borrowing room

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